Aldi announces fresh pay rise for UK staff

Aldi today announced a ‘bigger than expected’ pay rise for supermarket staff from next week to ensure it remains the best-paying chain ahead of discount rival Lidl . More than 28,000 hourly-paid staff at Aldi stores across the UK will be paid at least £13.02 an hour from September 1, increasing to £13.95 with length of service.

Aldi had said last month that it would hike pay for store assistants from £12.75 to £13.00 from that date to become the first supermarket to hit that minimum rate. But today it revealed it had made a further increase to £13.02 to maintain its position as market leader – after Lidl said a fortnight ago that it would also raise pay to £13.00.

It marks the second pay increase for Aldi staff this year. In London , the new rates are rising from £14.05 an hour to £14.35, increasing to £14.66 with length of service. Aldi also claimed it was the only retailer to offer all colleagues paid breaks, which bosses said was worth around £1,425 per year for the average staff member.

Giles Hurley, chief executive of Aldi UK and Ireland, said: ‘Our colleagues are at the heart of our success, and we’re committed to ensuring they are fully rewarded for the outstanding work they do. ‘This higher than planned pay rise is part of our promise to never be beaten on pay.’

The move by Aldi is the latest in an ongoing battle with its German discount rival Lidl to attract staff by positioning themselves as the UK’s best-paying supermarket. On July 29, Aldi said it would become the first supermarket to pay shop workers a minimum rate of £13.00 per hour.

Two weeks later on August 15, Lidl said it would give its workers a fifth pay rise in two years, upping its entry-level hourly rate to £13.00 nationally from September 1, rising to £13.95 depending on length of service. Now, Aldi has hiked its own rate to £13.02 to ensure it stays in first place – and it remains to be seen whether Lidl responds.

Lidl and Aldi have both seen their market share soar during the cost-of-living crisis after the pandemic as shoppers had switched from more established brands to cut the price of their weekly shop. Both are constantly trying to hire staff as they continue to open stores across the UK, with Lidl currently having about 980 stores compared to Aldi’s 1,500. It also comes after consumer group Which? revealed on August 5 that Lidl had beaten Aldi to the title of cheapest supermarket of the month, knocking it from the top spot which it held for nearly two years .

The closest competitor to both in wages is industry leader Tesco which said back in March that it would pay a minimum of £12.64 from the end of August, up from £12.02 at the start of the year and £12.45 since March. Sainsbury’s, Co-op and Marks & Spencer all pay £12.60 outside London – while Asda will increase pay to that rate from October, up from the current £12.45. Waitrose pays £12.40 and Morrisons pays £12.21.

Inside London, while Aldi and Lidl lead the way at £14.35, five rivals are all in joint third at £13.85 – Tesco, Sainsbury’s, Co-Op, Waitrose and M&S. Asda pays £13.62, although this will rise to £13.82 from October, while Morrisons pays £13.06. The Mail has asked Iceland to disclose its pay rates, which are not publicly available. The UK’s so-called national living wage – the UK minimum wage for workers aged 21 and older – is currently £12.21.

But the Low Pay Commission advisory body estimated earlier this month that the rate will need to increase to £12.71 in 2026 to not fall below two-thirds of median earnings: the threshold which the Government expects it to stay above. The LPC also acknowledged the national living wage could rise to as much as £12.86 an hour, or as little as £12.55 an hour, depending on changing economic conditions. The advisory body provides recommendations to ministers each autumn regarding how it believes the minimum wage should be changed. The Government ultimately sets minimum wage rates for the following April after this advice. The LPC will consult with employers, trade unions and workers on narrowing the gap between the national living wage and the minimum wage rate for 18 to 20-year-olds, which is currently £10.

There is also a minimum wage for those aged under 18, and apprentices, of £7.55. Separately, the London Living Wage is set at £13.85 to reflect the higher cost-of-living in the capital, but organisations must choose to pay the rate which is above the level required by law. It comes as the Bank of England is keeping a close eye on wage settlements as it assesses whether inflation pressures will allow it to lower interest rates further. Official data published on August 12 showed Britain’s jobs market weakened again with payrolls falling for a sixth month. However, wage growth stayed strong, underscoring why the BoE is cutting borrowing costs only cautiously. Wage growth remained at 5 per cent for the three months to June, but was only 1.5 per cent once inflation is taken into account, due to an uptick in the cost of living in recent months.